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Solution
Table of Contents
1.1 Hertfordshire and West Essex ICS NHS Procurement (H&WE) 3
1.2 Category of Spend Supply Chain Selected. 4
2.0 Market Changes Impact on Supply Chain. 5
2.1 Porter’s 5 Forces Analysis. 6
2.2 STEEPLED Analysis factors impact H&WE Supply Chain. 7
3.0 Sustainable Global Sourcing Decisions. 8
3.1 Sustainable Global Sourcing Decisions Factors. 9
3.2 Sustainable Global Sourcing Decision Making. 10
3.3 Global Supply Chain Risks Analysis. 13
4.0 Strategic logistical implications of globalisation. 14
4.1 Globalisation Evaluation and Supply Chain. 14
4.2 Strategic Considerations of Global Supply Chain. 14
4.3 Strategic logistic risks, opportunities and globalisation. 15
5.0 Supply chain management and corporate performance. 16
6.0 Conclusions and Recommendations. 17
Figure 1:Summary of the HWE Trusts. 4
Figure 2:H&WE Procurement Areas. 5
Figure 3:H&WE organisation structure. 6
Figure 4:H&WE Sustainable Global Sourcing Decisions Summary. 10
Figure 5:3P’s Triple bottom line Analysis Factors. 11
Figure 6:Approaches of global sourcing decision.. 12
Figure 7:H&WE Mendelow Matrix Analysis. 13
Figure 8:Global Supply Chain Matrix Summary. 16
Table 1:Competitors for CDW Limited supplier of laptops. 7
Table 2:STEEPLED Factors Analysis. 8
Table 3:Summary of the supply chain risks analysis. 14
1.0 Introduction
1.1 Hertfordshire and West Essex ICS NHS Procurement (H&WE)
Hertfordshire and West Essex ICS NHS Procurement Services (H&WE) is a United Kingdom (UK) based organisation (H&WE, 2023). The organisation operates by offering strategic and transactional procurement services and on-site materials management. This is offered to their 5 NHS Trust within the Integrated Care Services (ICS) pathway which are as illustrated in figure 1;
Figure 1:Summary of the HWE Trusts
Source: Internal documents
With the evident changes in the NHS operations and broad landscape of health sector in UK and internationally, the organisation ensure that procurement plans progressively deliver more for less. This is achieved by working in collaboration with all levels with their customers and regional and national agencies for delivering optimum value for their Trusts for spend on goods and services. The role of the learner in the organisation is a tactical and transactional buyer in within the Operational category. The PS&M team in H&WE are involved in offering a top-notch service to their different customers in their different focus areas. A summary of their areas of focus is as illustrated in the following;
Figure 2:H&WE Procurement Areas
Source: Summarised from HWS (2023)
1.2 Category of Spend Supply Chain Selected
Adopting the definition of CIPS (2023), supply chain is “activities pursued for delivering goods and services to the consumer”. It prioritise on core activities in the organisation for converting raw materials/component parts to finished products or services. The spend category is provision of laptops and computers hardware for all their 5 trusts. The supplier selected is CDW limited which is a strategic item with cost being high at £600,000 and contract with CDW limited falls under strategic matrix. This is due to the complexity of the contract and high spend category and critical service to the trust. The organisation structure is as illustrated in the following;
Figure 3:H&WE organisation structure
Source: Summarised from organisation internal documents
In summary, the supply chain is used in H&WE to engage CDW limited who is the supplier of laptops and computers hardware for all their 5 trusts. The trusts are the end-users of the organisation and actively engaged in ensuring successful sourcing process with all stakeholders engaged included as end-users. This is with their procurement arrangements continuing in delivering more for less. The supply chain is collaborative in entire levels with their clients and close conjunction with regional and national agencies for delivering optimum value to their trusts for spend of goods and services.
2.0 Market Changes Impact on Supply Chain
Market changes are informed by constant evolvement of supply chains, technologies and diversification of employees skills set (CIPS, 2024). Hence, organisations are significantly aware of market competition changes with a necessity for developing and re-inventing market offering for preserving and developing market positioning. Considering H&WE supply chain, market changes impact can be evaluated by use of Porter’s 5 Forces and PESTLE Analysis (CIPS, 2022);
2.1 Porter’s 5 Forces Analysis
In sourcing laptops and computers hardware, competitive factors impact H&WE directly. By opting for CDW limited supplier, the organisation is in a position of leveraging on competitive advantage. A summary of the top suppliers in UK for the laptops and computers hardware is as illustrated in the following;
Table 1:Competitors for CDW Limited supplier of laptops
Source: Summarised from D&B Business Directory (2024)
Taking into account of the different competitors in laptops and computers sourcing in UK market, Porter’ 5 Forces Analysis can be carried out as follows;
Threats of Substitutes- This is moderate since there are alternatives to laptops provided by CDW limited. H&WE supply chain is impacted at the point of ensuring end-users preferences are included.
Power of Suppliers- The power is low since CDW Limited relies on the influence and popularity of different brands (Apple, hP, Dell and Microsoft). This influence the supply chain as manufacturers of laptops and computers involve in setting guideline on quality and sustainability.
Threats of New Entrants- This is high since apart from CDW Limited, there are other organisations including Deloitte consulting, Ingram Micro and AMAX. They influence supply chain network owing to need for reducing enormous distribution network, excellence in supply chain management and clients relations.
Power of Buyer– This is low to moderate impact on H&WE supply chain considering they rely on manufacturers of the laptops and computers for good brand image. The supply chain is nevertheless impacted by 40% of employees in H&WE having their preference on using smartphones and mobile gadgets.
In summary, the different Porter’s 5 Forces Analysis factors have a direct implication on H&WE supply chain. This influence on the suppliers relations, reduced switching costs and growth in demand of laptops and computers impacting supply chain. By H&WE prioritising on CDW Limited, there are different alternative suppliers where the organisation can reviews on specifications and quality level.
2.2 STEEPLED Analysis factors impact H&WE Supply Chain
This model evaluates “social, technological, economic, environmental, political, legislative, ethical and demographic factors” (CIPS, 2024a). This is for driving organisation strategy and leading towards development of relationships for growth. A summary of market analysis for H&WE market of operations is as summarised in table below;
Table 2:STEEPLED Factors Analysis
Source: Summarised from CIPS (2024a)
In summary, from the different STEEPLED factors analysis, Mintel (2024) identify 43% consumers concerns are on time spent while looking for desktop, laptop and tablets. The supply chain network must include considerations of quality laptops and computers. Similarly, with technologies growth (laptops and computers market size reaching £3,350 million as at 2023. This is with best ethics integrated in the supply chain network and supply chain equality levels enhanced.
3.0 Sustainable Global Sourcing Decisions
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